What I've been told is that most of these suits are dropped early on. Med-mal insurance companies vigorously defend them because they don't want a reputation around the lawyer's pub (or is that bars) that they're an easy target. Unfortunately, the John Edwards' of this world have pioneered new legal theories like "birth hypoxia" that causes cerebral palsy. All you democrats out there remember this! Natch' someone must have caused this. The naturopathic crowd will say we don't need the evil ob's because women have delivered on their own for millenia. True, but they've also died with post partum bleeding, infections, and other bad things, as have the kiddos when a timely intervention wasn't available.
As a result, the c-sect rate is way up (even though there's no evidence that supports this making a difference). It makes the question "Why didn't you do a section sooner Doctor?" go away. Sighhhh.